Nufarm ends Sinochem talks, Sumitomo to Buy 20% stake

Japans Sumitomo would buy a stake of up to 20 percent in Nufarm at A$14.00 a share through a tender offer, a near 33 percent premium from Nufarms last traded price.

Sinochem had offered a revised A$12.00 per share for the whole of Nufarm, or $2.3 billion, cutting its offer last week from an original A$13 per share.

"Sumitomos proposal places an appropriate value on the company and provides all Nufarm shareholders with the opportunity to realize a fair price for the some of their shares," Nufarm Chairman Kerry Hoggard said.

Nufarm also said on Tuesday it would raise A$250 million ($221 million) in equity.

"Nufarm is a first class company with strong growth prospects and Sumitomo looks forward to identifying additional opportunities for co-operation," said Kenjiro Fukubayashi, Sumitomo representative director and agriculture sector president, in a statement.

The end of the Sinochem talks marks the second time since 2007 that Nufarm has failed to strike a deal with a Chinese company.

Two years ago, Nufarm was approached by China National Chemical Corp, which led a A$3 billion approach with U.S. private equity, but no formal offer emerged.

Trading in Nufarm shares, 11 percent-owned by Managing Director Doug Rathbone, will resume trading at 0000 GMT.